The Facebook stock (NASDAQ: FB) traded higher on Friday, hitting once again its record peak at around 241, reached for the first time on June 10th. In the very short-term picture, the stock is trading sideways between that level and the 223 barrier since May 20th, but its somewhat bigger outlook appears to be positive, as it continues to trade above the upside support line drawn from the low of March 18th.
A strong break above 241 will take the share into unchartered territory and thus, given that we cannot mark resistance levels from historic peaks and troughs, we will consider as possible targets round numbers, like the 250 and 260 areas.
Turning our gaze to our short-term momentum studies, we see that the RSI lies above 50 and points up, while the MACD, already positive, has just poked its nose above its trigger line. Both indicators detect upside speed and increase the chances for FB to hit new record highs soon.
In order to abandon the bullish case, we would like to see a decisive dip below 223. This would not only bring the price below the aforementioned upside support line, but would also confirm a forthcoming lower low. The decline may continue towards the inside swing highs of May 11th and 12th, at around 215, the break of which may carry larger bearish implications, perhaps paving the way towards the low of May 14th, near the psychological zone of 200.
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